Quote:
Originally Posted by Hondaracer
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What’s the incentive to be a landlord when you can’t cover your costs of a rental unit?
Add in the million plus international students we will bring in next year, and good luck lol..
I’m b4 rental unit shouldn’t turn a profit communism take
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I worked with rich landlords that had 5 - 20+ units. Most notable was this family who owned the entire corner unit over 40+ floors + penthouse in one tower.
They don't care about profitability as much as you think, past a certain net worth they care about preserving capital and better risk adjusted returns. They rather make 2% on their $1M condo and suffer a max price drop of 20-25%. Than to take a downside of-40% downside via index funds.
Their older units that are sitting on 100%+ cap gains + massive cash flow can help pay for the shitty ROI on the 2023 purchases. They'll become profitable in 2033 when rent catches up and price sgo up.